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Leading Bordeaux négociant Joanne is allegedly invovled in a wine smuggling case that’s being investigated by Chinese authorities, according to Chinese media reports, the second time the négociant has been linked to wine smuggling after its employee was first questioned over a RMB 368 million bust in 2022.

The original Chinese report though did not explicitly name Joanne by its full name, it however stated the company’s name starts with the letter “J” and was incepted in 1862.

Founded by Paul Joanne in 1862, Joanne is a prominent negociant house. A leading supplier of the finest Bordeaux wines, it ages six million bottles in its Bordeaux warehouses. The company boasts 300 active customers in 70 countries around the World.

It operates with two subsidaries Joanne Bordeaux USA and Joanne China.

One of Joanne China’s employees surnamed Wu in 2022 was reportedly questioned by authorities in relation to a RMB 368 million (US$51.8 million) cross-border wine smuggling case from Hong Kong to mainland China. The investigation back then implicated fine dining restaurant owners, wine importers in Shanghai and Ningbo, according to Chinese reports.

The most recent case under probe by Chinese authorities reportedly involves a different employee surnamed Xiao. According to the report, Xiao has been out of reach for over a week since January 23.

It’s not immediately clear if Xiao is invovled in any wrongdoing or if he’s directly implicated in the smuggling.

This incident sheds light on the prevalent practice of smuggling tax-free fine wines from Hong Kong to mainland China, a practice that has intensified following the pandemic-induced border closures where smugglers employeed speedboats and trucks to funnel wines to the mainland.

Despite recent declines in consumption, China remains the largest export market for Bordeaux wines, presenting lucrative opportunities for the industry. Most merchants in Hong Kong dealing with Chinese buyers are aware of the likelihood that their Chinese clients may be involved in smuggling, but they often adopt a “don’t ask, don’t tell” approach, fearing the repercussions of being implicated in these activities.

An email sent to Joanne on Xiao’s relationship to the company and its invovlement has not been replied yet at the time of publishing.

According to Joanne’s website,since 2005, it has been active in the Chinese market. Its operation in China is headed by Laurent Bonnet.

As the situation unfolds, the investigation is still ongoing. Further developments will be closely monitored and reported.